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SPEND DOWNS & MEDICAID

Looking for solutions?

Planning ahead will save you thousands of dollars and give your family peace of mind!

Medicaid/SSI Spend Down Guidelines

Since 1981 our staff has been assisting families across America. When applying for DSHS assistance (Nursing Home Care) all funds placed in our Irrevocable plan does not count as an asset against you. Many individuals may have more then $2,000.00 in cash assets when applying for Medicaid assistance (DSHS). If the excess funds over $2,000.00 are placed with our irrevocable trust this excess is protected to pay for final expenses in the future. (Protection for the client and their families.)

 

Transfer of Asset Rule

Medicaid regulations restrict an applicant or recipient from transferring, giving away, or assigning assets in order to become eligible for benefits, The value of the transfer will be counted as a resource and may result in a period of ineligibility.

 

The use of an irrevocable assignment of policy ownership allows the transfer because there is adequate consideration. Adequate consideration is a legal concept requiring the applicant or recipient to receive something of equal value for the property transferred or assigned.

 

With Purple Cross Final Expense Plans the Medicaid/SSI applicant or recipient receives something of value by preplanning with Purple Cross in return for the irrevocable assignment of the ownership of the life insurance policy.

 

At Purple Cross we pride ourselves in helping you. Our professional staff has reviewed the departments of health and social services in most states, as well as the Health Care Financing Administration (HCFA), and the Social Security Administration (SSA) in connection with determining how our products affect eligibility for Medicaid/SSI benefits. We have helped thousands of families that have contacted our offices looking for solutions.

 

In general, your state provides that the value of the prearranged final expense agreement and the life insurance policy are excluded as a countable resource in determining eligibility if an irrevocable assignment of policy ownership has been executed.

 

When you contact Purple Cross, our staff will provide you with detailed information and answer all your questions. There are no fees and our assistance to you is free.  Call 1-800-883-5090.

Frequently Asked Questions

Have a question that you cannot find here?

Call us at 1-800-883-5090 or email us at martin531@comcast.net

CONTACT US

How long has Purple Cross been in business?

Since 1948 and Purple Cross is owned by the Washington State Funeral Directors Association.

 

How many families has Purple Cross served with it's products?

Since 1948 Purple Cross has served over 500,000 families across the United Sates.

 

Is there a dollar limit to what we can set aside and still qualify for

Medicaid Assistance for nursing home care?

No reasonable amount is refused. However, our office places a limit of $25,000.00.

 

Can we set aside money to pay for travel related expenses of family members for the funeral or cremation services of our loved one?

Yes. travel expenses including airfare, lodging, meals and etc. are allowed.

 

Are there any charges for the services you provide?

No.

 

After contacting your office, how long does it take for you to prepare the documents we will need to present to DSHS?

The process at our office is very simple and fast. We can prepare the documents you will need within 24 hours of your call.

 

How long are these prices good?

If you purchase a Purple Cross policy today, your cost for these packages may never increase. Your Purple Cross policy may take care of any inflation when you select one of our recommended providers.

 

Do these packages cover all costs?

You may be faced with some third party costs that are totally outside the control of the funeral service provider. Such additional expenses may include:

 

• State sales tax (merchandise only)

• Certified death certificates

• Obituary notices

• Cemetery expenses

 

Can Purple Cross help with third party expenses?

Yes. Most people elect to add an allowance to their policy to help cover these expenses. The funeral service provider cannot guarantee these costs, so your survivors will get to apply the extra funds toward these expenses as they see fit. Any money not used will be returned to your family.

 

Note: If you claim a Medicaid or SSI exemption for these funds, they must be used for funeral related services.

 

What if I don’t want to select a funeral home or if I move and don’t use the firm I originally selected?

Your next of kin may use any firm of their choice to service the package. However, if you elect not to use a Purple Cross recommended provider, then the cost does not apply and your beneficiaries or the utilized funeral home will receive the proceeds in cash. In this instance, the package selected can serve as a guide to your wishes.

Resources

Federal Trade Commission

The FTC deals with issues that touch the economic life of every American. It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy. For more information, visit www.ftc.gov.

 

Department of Veterans Affair

Are you or your spouse a Veteran and have questions about burial benefits? Then visit www.cem.va.gov.

Museum of Funeral Customs

The Museum of Funeral Customs provides the public with a deeper understanding of the history of American funeral and mourning customs, funerary art and practice; fosters an appreciation of history within the funeral profession; and encourages further study on the subject. To view this website visit www.funeralmuseum.org.

 

Transportation Security Administration

If you are planning to travel by airlines with cremated remains, then you may want to visit www.tsa.gov.

Funeral Ethics Association

The Funeral Ethics Association provides a mediation service – at no cost to the parties in dispute. For more information, visit www.fea.org.

 

A Career in Funeral Service

For information about a career in funeral service, visit the U.S. Department of Labor website at www.bls.gov.

FAQ

Federal Trade Commission

The FTC deals with issues that touch the economic life of every American. It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy. For more information, visit www.ftc.gov.

 

Department of Veterans Affair

Are you or your spouse a Veteran and have questions about burial benefits? Then visit www.cem.va.gov.

 

Museum of Funeral Customs

The Museum of Funeral Customs provides the public with a deeper understanding of the history of American funeral and mourning customs, funerary art and practice; fosters an appreciation of history within the funeral profession; and encourages further study on the subject. To view this website visit www.funeralmuseum.org.

 

Transportation Security Administration

If you are planning to travel by airlines with cremated remains, then you may want to visit www.tsa.gov.

 

Funeral Ethics Association

The Funeral Ethics Association provides a mediation service – at no cost to the parties in dispute. For more information, visit www.fea.org.

 

A Career in Funeral Service

For information about a career in funeral service, visit the U.S. Department of Labor website at www.bls.gov.